This book responds to the increasing speed with which the domain of electronic procurement has been evolving, as well to the significant advances predicted to take place in the near future. Covering the fundamentals of electronic procurement as well as advanced applications, the main focus is on the critical importance of information technology for modern supply management professionals. Tracing the evolution of electronic procurement over the last 20 years, the book illustrates how the concept has evolved from a novel idea into a standard approach that cannot be neglected, fundamentally transforming business as usual. The transformation is highlighted by the evolution of online reverse auctions, as well as the ensuing expansion of technology to virtually all aspects of strategic sourcing in the form of integrated electronic sourcing suites. Several advances and new applications of electronic procurement are presented, with an emphasis on how social media can be leveraged for supply management and its associated significant potential.
Table of Contents:
Chapter 1: Setting the Stage
Supply (Chain) Management and Strategic Sourcing
The Increasing Importance of Supply Management
Concluding Thoughts
Chapter 2: Why You Cannot Neglect Electronic Procurement
The Opportunities Are on the Table
A Brief Illustration of the Impact of Electronic Procurement
Benefits of Electronic Procurement
Visibility
Communication
Efficiency
Automation
Standardization
Availability
Process benefits
Additional drivers
Buyer Beware: Drawbacks of Electronic Procurement
System Capabilities
Implementation Costs
Reduced Human Interaction
Internal Resistance
Supplier Limitations
Security
The Importance of Preparation
Planning
Systems Analysis and Planning
Systems Design
Development
Integration and Testing
Implementation
Operations and Maintenance
Further Consideration
Concluding Thoughts
Chapter 3: The Evolution of Electronic Procurement
A Common Theme: Facilitating Information Flows
Electronic Data Interchange
Materials Requirements Planning
Manufacturing Resource Planning
Enterprise Resource Planning (ERP) Systems
Integration and Implementation Benefits
Implementation Considerations
ERP Systems as an Enabler of Competitive Success
Additional Applications
Concluding Thoughts
Chapter 4: The Advent of the Internet and Online Reverse Auctions
Tapping into My Evolving Research Stream
Making the Online Reverse Auction Decision
Bundling Research
Adoption Research
Avoiding Mistakes and Developing Best Practices
Mechanics of Online Reverse Auctions
Supplier Benefits
Concluding Thoughts
Chapter 5: Online Reverse Auctions: Challenges and Best Practices
The Importance of Having the Right Bid Package
Preceding Work on Item and Bundle Characteristics
The Importance of Preparation
The importance of Education and Training
Moving Toward Self-proficiency and the Role of the Online Auction Provider
Value Added Benefits Offered by Third-Party Providers
Dispelling the Myths Surrounding Online Reverse Auctions
Online Reverse Auctions are Only About Price
Online Reverse Auctions are Only Suitable for Commodities
Online Reverse Auctions Damage Buyer-Supplier Relationships
Savings in Online Reverse Auctions will Decrease over Time
Online Reverse Auctions Are a Passing Fad
An illustrative Example of a Successful Online Reverse Auction Implementation
Concluding Thoughts
Chapter 6: Becoming Mainstream: Electronic Sourcing Suites
Strategic Modules
Online Reverse Auctions
Spend Analysis
Performance Management
Contract Management
Operational Modules
Catalogue Management
Requisition Management
Purchase Order Management
Invoice Management
Electronic Sourcing Suite Provider Landscape
Concluding Thoughts
Chapter 7: The Potential of Social Media
Definition and Background
Study Design
What Is Social Media?
How Is Social Media Being Used?
Why Is Social Media Used Not More Often?
How Can Social Media Be Used to Drive Business Performance?
Concluding Thoughts
Chapter 8: Outlook to an Exciting Future
Blockchain
Big Data Analytics
Data Visualization
Artificial Intelligence and Cognitive Procurement
Concluding Thoughts
About the Author :
Tobias Schoenherr is Professor of Purchasing and Supply Management at the Broad College of Business, Michigan State University, USA. An award-winning scholar and teacher focusing upon the area of sourcing, he has published more than 60 papers in peer-reviewed academic journals. He is currently Co-Editor-in-Chief for the International Journal of Operations and Production Management, and also serves as Associate Editor for the Journal of Operations Management, Decision Sciences and the Journal of Purchasing and Supply Management.
